April 16, 2014
Main Street to Wall Street

Photo: Gary Civins

Business Profile of ADT

Main Street to Wall Street

Mike Vogel | 10/31/2012

Inside an otherwise standard suburban office building in Boca Raton runs a “Main Street” with a salon/barber shop, fitness center, doctor’s office, massage therapy, chiropractor, Starbucks and a cafeteria. On a weekday morning in August, it was abuzz with the hundreds of employees who filled the building as they readied the debut of south Florida’s latest public company, residential and small-business security monitoring firm ADT.

“We’re a $3-billion startup,” jokes CEO Naren K. Gursahaney, who relocated from New Jersey to lead the company, which was spun off in late September from its Swiss parent Tyco International. It employs 625 in south Florida and 3,000 overall at its nearly 20 offices in Florida.

ADT’s challenges include competition from cable and telcos and customer attrition, which ran 13.5% in the last reported quarter as a unit of Tyco. That said, the largest U.S. security company already has drawn takeover speculation. It has a 25% operating margin, grew even in the recession, hasn’t seen its market share suffer and has lots of room to grow. Only a fifth of U.S. households have monitored security. ADT has a quarter of the $12.5-billion market. It typically posts 3% to 6% annual revenue growth. In its last quarter under Tyco, ADT saw a 5% increase in operating profit to $208 million on a 4% increase in revenue to $815 million.

Aside from providing work-life balance, Main Street has proved fruitful as a place to hold meetings and for serendipitous encounters on company business. Says Gursahaney: “It really does create an incredible open environment.”

Tags: Southeast

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single ditgital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

Terry Tomalin and the Great Skunk Ape
Terry Tomalin and the Great Skunk Ape

Terry Tomalin, Fitness-Outdoor Editor for the Tampa Bay Times and author of "Everyday Adventures, A Florida Outdoors Guide," regales with tales of Florida's wild side... and the chance to encounter Florida's famous resident cryptozoological creature.

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Prices have been increasing on beef and pork. How will this impact your grocery bill?

  • Greatly: I will be spending more because I buy a lot of beef and pork
  • Some: I will likely be switching to cheaper cuts or to poultry
  • Not much: I have been cutting back on meat anyway
  • Not at all: I don't eat beef or pork

See Results

Ballot Box
Subscribe